tv Your World With Neil Cavuto FOX News January 10, 2011 4:00pm-5:00pm EST
9-year-old kristina greene, who was just elected to her student council. she was hoping to be a positive part of the future of america and she has become just that. she loved baseball. she was the only girl on her little league baseball team. and she loved to wear red, white and blue. i should tell you kristina was born on september 11th, 2001. she thought of her birthday as a day of hope, a time to find goodness in america. as her mother said, her light shines on all of us today. saturday's events were not just an attack on those individuals we loved and lost, but an
in fact, we've been lifted up by america's thoughts and prayers, and we're deeply grateful for them. arizona, like all of america, has been through difficult times before, but those times have united us and made us stronger, more enduring. let those of us who serve our state and country do so in a way that honors those that we have lost. our meetings on sunny days will not end. like the words from isiah, i believe arizona will rise on wings like eagles. we will run and not get weary.
we will walk and not grow weak. so i ask for your help and your continued prayers as we step from here and guide this great state with courage and devotion. may god bless all the victims and their families and those suffering from saturday's tragedy. may god bless those who serve us in the cause of freedom and justice. may he bless you and your families and the great state of arizona. and may god always bless and protect the united states of america. thank you. [applause] >> all right. you've watching arizona governor
january brewer, was set to be her state of the state address, where a governor spells out what they're going to do to move the state forward, some of the big economic issues, the overwhelming issues, but of course that was the original plan, and then events happened this weekend, didn't they? governor brewer keeping it short, not so sweet, responding to what's been horrific developments in her state in the last 48 hours, saying our response in arizona must be led by prayer and comfort for the victims. she spelled out all the victims, and right now we are following the man who perpetrated all of them, because we're live in tucson, arizona, where 22-year-old jared loughner is set to make his first court appearance any moment now. loughner's charged, of course, in the rampage that led to arizona congresswoman gabrielle giffords critically injured with a gunshot wound to the head and six others now known dead. here's what we know, the very latest.
law enforcement source is telling fox it is believed that loughner acted alone. the fbi issuing a directive to local law enforcement today on what to look for when dealing with lone wolf attackers. loughner is expected to be represented by one judy clark. she's the same judy clark who represented among others the unabomber. that hearing is set to begin any moment. we'll likely get our first glimpse of loughner. officials say the alleged gunman is not cooperating. in fact, he hasn't said a word to investigators at all. he faces five federal charges. among them, one count of attempted murder of a member of congress, two counts of killing an employee of the federal government, including federal judge john roll, and two counts of attempting to kill federal employees. more should be coming. just moments ago, we're told the fbi just got into the suspect's house after reports initially the family had barricaded themselves inside. a live report moments away.
first to greta van sustern. greta, the legal steps now, what do we expect to happen in that courtroom in phoenix? >> he'll be told of his charges, and they'll set what's called a preliminary hearing and send the matter to a grand jury for indictment. he's not been formally charged. he's charged now by what's called a criminal complaint, where the federal government simply puts a hold on him and tells him preliminarily what the charges are. this is just the beginning. judy clarke is well known to us in the defense bar. she has a rich history of being a very aggressive defense attorney, but i think this man needs a magician, not an aggressive defense attorney at this point. >> you have up to 30 days to get an indictment back, but do you think it will be sooner than that? >> the federal government is no particular rush. they want him out of circulation. they want to develop their case. they could rush in and get an
indictment quickly, but you want to do it well. i would not expect an enormous rush. they have to step back, take a deep breath, get all the eyewitnesses, and there may be a collateral state action going on. he's been charged in federal court, but he's also violated arizona state law, and so no doubt the federal prosecutors and the state prosecutors are coordinating, trying to figure out how best to do this. >> all right. we were looking live at the scene outside the phoenix courthouse, sandra day o'connor courthouse. in the meantime he's in federal authorities' hands, right? he has to cool his jets under their watch, right? >> yes, but, i mean, that really is of no huge moment to him or to anybody else as to who holds him. the biggest thing is to get him out of circulation. likewise the criminal complaint that's been filed is that simply a way to hold him. it is not meant to be a legal document. it's not supposed to be anything that will be telling down the road.
it really starts anew once there's a grand jury indictment. you can't simply hold somebody, so we have this sort of preliminary process called a criminal complaint where it goes to a preliminary hearing unless he's indicted before the preliminary hearing, which case you have no preliminary hearing, but otherwise you have a preliminary hearing bound over to the jury, if he's indicted, and i expect him to be, they set a trial date, and it goes on from there. >> we're getting reports that he's not cooperating, that he's not saying anything. how do you go forward with that and what do authorities likely do? >> well, what judy clarke has gotten to him, the defense lawyer, and told him not to talk. that's standard operating procedure, because the fbi is not there at this point to help him. of course she does not want him to talk. you know, this is not a huge, you know, mystery, this case. this is not a whodunit. this is a question of why he did it. he'll get a trial to determine whether or not beyond a reasonable doubt it's been proven that he did it, because there's so many eyewitnesses, tackled at the scene. not timmy mcveigh, 90 minutes
later, they had to tie him to the crime. this is very different. i expect this is a question of whether he's legally sane or not. he had strange ramblings that he put on youtube. there will be a question of whether he's legally sane or not is my guess as to what the defense team is looking at, even right now. >> so if you're judy clarke, you're trying to gather that tough together to support your case, and certainly a lot of that, right? >> yes. the legal standard is whether he knew right from wrong essentially. and so she's going to find everything to show that he has a very confused mind. now, it does help her that he left these warnings that something was going to happen, because that suggests that he did know what he was going to do was not right. you know, this is not an uphill battle. people shouldn't think insanity defenses are easy for lawyers to work with. they're not. she'll be looking very much at his inability to determine right from wrong, and the prosecution on the other hand will be looking at deliberate acts, the fact that he bought the weapon
in november. anything that he said that was sort of a warning that he knew that he was going to go away, going to do something. so the prosecution and the defense are both trying to -- they're working on the same thing, whether he knew right from wrong or not when he did that. >> we know he's in the courthouse, we've learned that, that is loughner. let me ask you a dumb, simple question on my part. what you're planning this out, if you're loughner, and sometimes months, years after the fact, you deliberately write and say crazy things on the internet. to bolster the cause that if and when they do catch up with you, you can prove, you've got a laundry list of worldwide proof that you're not all there. but that was by design, that you're planting the seeds to be seen unfit to be treated like a normal rational human being. >> i suppose hypothetically you could do that, neil, but the insanity defenses don't win very
often. you've got 12 people sitting on the jury, in the courtroom, listening to how methodical your actions were. if you can appreciate that what you're doing is wrong, in any sort of way, for instance, running away may show that you knew you shouldn't have done it. any way you tried to cover your tracks at all, indicates that he or she knew what they were doing is wrong or right. i suppose in hollywood you could get away with it, but in the courtroom i doubt you could be so clever to create an insanity defense leading up to it. but just saying crazy things doesn't mean legally insane. what makes you legally insane is that you don't know that it's wrong. that's very different. >> all right. there's added pressure from federal authorities to keep him well protected. i'm sure there are quite a few people who are angry in the area, don't like him being alive right now, right? >> we have instances where doctors get in emergency room people who have committed crimes, and they save their lives. i mean, you know, the police are not there to -- the authorities to kill him, they're there to see that he gets processed
through the system appropriately. >> just went on to protect him from those on the outside who feel differently. >> yes. oh, yes. look, there's a lot of hostility toward this man understandably. who isn't furious, feeling hateful toward this man? i don't see that as an abnormal, unusual reaction. anybody who takes action against this man is committing a crime as well, because now the focus is to get him through our system and to make sure there's justice for the victims, justice for the families, but that means making sure he has a trial. >> all right, greta, i look forward to you chatting with governor brewer tonight. as always, thank you, greta. >> thank you, neil. in the meantime to tucson now. trace gallagher in tucson with the very latest. did they barricade themselves in, trace, what? not? >> the report came in, and they said in fact the parents of jared loughner, the house he lived in, they barricaded the
front, the fbi pounded on the door, saying let us in, and they weren't allowed in. we sent a crew to the scene, and turned out the barricade was a piece of plywood and the fbi are in the house speaking with the family. we were out at the house a short time ago to check out these reports that jared loughner had actually built this eerie shrine made of a tent, an alter inside with a replica of a human skull. we went out there, took our cameras, a neighbor allowed us to peek over the wall there. we took some video. we didn't see the shrine, but then we spoke with police and they confirmed that in fact it did exist. we also got our first video of randy loughner, the father of jared. very important, because, one, nobody's seen him. we certainly haven't heard from them. the parents have made no comments whatsoever. you mentioned earlier jared loughner has not spoken. friend of his are speaking out. in fact, very important comments today coming from a man named
bryce tiernie saying that jared had a grudge against gabrielle giffords, because he went to a campaign event a couple years ago, asked her a question, and didn't get an answer. this man went on to say that dreams are an alternate reality. he gave this quote "i saw him dream journal once." that's the golden piece of evidence if you want to know what's going on in jared loughner's mind. there's a dream journal, he says, that will tell you everything. part and parcel, you put it together, neil, and you have developing picture of a young man who was very disturbed, even his friends recognized that. >> you know, trace, the parents, family members, were they aware of this shrine? do you know whether he hid it from them? >> it was in plain view.
the father spoke to cops today. he knew about the shrine. the father said he was going to take it down. we peered over, so he may have already taken it down, because the backyard appeared to be cleaned up. the father knew about this thing, saying he'd take it down. neighbors said the father was odd, very introverted, wouldn't speak to the other neighbors. you look at the things that were founded in jared loughner's room, and then you look at the parents, and so we're not drawing any conclusions, but what the neighbors say is the whole family very much missed it. >> do you know whether any of the things that happened earlier today, as charged in the "arizona republic" where the family wouldn't let agents in, whether that was much to do about nothing or went in the side doors, got in anyway, the family was supportive, helped out, what? >> well, i think the fbi was going to get in anyway, so, you know, it's hard to say on that,
but i will tell you when we went out there, neil, they called the sheriff's department on the media. the media was trying to get a view of this shrine, and the family called the cops. the cops showed up and blocked off the street. and the sheriffs went inside and they talked to the family. so they willingly let them inside, which is when we got the pictures of randy loughner. so earlier they welcomed the police over to help them keep the media away, and the reports are that later they blocked the fbi. so what we have learned is the family is now talking to the fbi inside the house. >> trace, hang on here. we understand that loughner is now in in the federal courthouse in phoenix, the sandra day o'connor courthouse, named after the former supreme court justice, that he showed up handcuffed, wearing an inmate uniform, his head was cleanly shaven, and that at least at this moment he's not -- maybe as greta pointed out -- spoken to authorities in any way, shape or form.
have you heard anything else about how he's been since under federal protection? >> no. that's the interesting thing here, neil, we didn't even know until late yesterday afternoon that he'd been shepherded out of the tucson area up to phoenix. remember, we thought he'd make his initial appearance yesterday on closed-circuit television at the courthouse here in tucson. that was not the case. they took him away from here, took him to phoenix. all along the sheriff here has been telling us he's not said a single word about this case, not word one, that he's taken the fifth, and that he's not cooperating with investigators in the least. as greta said, maybe that's because his high-profile attorney, judy clarke, gave him advice not to speak, but the information we're getting is, since he's been in custody -- remember, the fbi took charge of this case early yesterday, so mostly this has been with the fbi -- he hasn't said a single word that we know of. that's coming from the local
sheriff. he has been uncooperative, and his parents haven't said a single word. we do not know if they are being cooperative with the authorities. >> man, oh, man. all right, trace. you do great work, nonstop work on this. thank you very much. here's what we know, loughner in court right now, where they'll outline the charges against him, and then an indictment could follow. that could take up to 30 days. in the meantime as trace pointed out, he ain't talking. the alleged shooter in court, first images of him expected to be out any minute. you know, maybe not. they're keeping this guy well hidden from everybody. security a chief reason. meanwhile she took on one of the nation's most troubled school districts. now she's taking her fight to clean up classrooms nationwide. a major announcement today. the lady who shook up the school system in a district now taking it across america, michelle rhee next.
>> jared loughner has appeared in court, but not said anything. right now he's at the federal courthouse in phoenix, arizona. a grand jury is taking up whether to indict him. they have 30 days to decide to do that. that could come sooner than that. there was an opportunity for loughner to say something, make a brief statement, and he didn't say anything. we're told from authorities on the scene that he hasn't said anything, not even a word insanity defensesincehe was app. meanwhile across america, states look to slash spending. teacher tenure is looking like a
target. michelle rhee has been there, done that, and hopes to put forward a new agenda to put students first nationwide and accountability up front and center. the founder of students firstdowjoining me right now. you're taking essentially what you were trying to do in d.c., make schools accountable to parent, the kids themselves, and bring it nationwide, right? >> that's exactly what we're trying to do. not just what we did in d.c., but what great education reformers have been doing nationwide, but just in pockets here and there, and we want to create a national movement with a national agenda to put students first and make america's schools number one again. >> why did teachers hate you so much in washington? what was it that was clipping their wings? >> you know, here's the thing. i don't think it was so much that teachers hated me. the teachers union, the leadership did not like me, because we were challenging the age-old rules that existed around tenure and seniority and
lockstep pay. so, for example, the teachers union leadership, when we first put a new and very revolutionary teachers contract forward, they were refused to take it to a vote, because they didn't like the fact that we were tackling these tough issues, like tenure. what we were saying to teachers was, we're going to pay you a whole lot money, but you've got to be held accountable. when the contract actually went for a vote, it passed by the rank and file 80% to 20%. so the vast majority of teachers really had no problem with the concept whatsoever. >> all right. you were just saying accountability, which is not a foreign concept for -- ceos have to be accountable to the shareholders, we have to be comfortable to viewers, ratings. we all have a metric by which we're judged. >> right. >> what would be the metric to judge teachers by nationally? >> whether you're moving the academic achievement levels of your children.
when i started my job as a chancellor in d.c., in 2007, 8% of the eighth graders in the city were on grade level in mathematics, but 95% of the adults in the system were being rated as doing an excellent job on their performance evaluations. how can you have a system where all the adults are thinking around thinking we're doing a great job, but the kids are at 8%. >> when they say it's not easy to judge a kid's score, only so much we the teacher can do, what do you say? >> that's absolutely right, but there are methodologies to do that. there's something called a value add growth model. that measures your kids when a teacher gets them at the beginning of the year, measures where they are academically, and then it measures them again at the end of the year. and you can control four things like, you know, their income level and their demographic information. >> so it wasn't as your critics
said a secret way to chop the unions away? >> no, not at all. what it is, it's a way to identify who your top performers are, because you want to recognize and reward those people, hopefully pay them a lot more money, and it's also a way to identify the lowest-performing teachers, so you can improve them or move them out of the system. >> you've been advising a number of folks, including the newly-elected governor in florida. >> yes. >> what are you looking for him? the same type of thing? >> we're working with governors across the country specifically on these issues, helping them to put a legislative package together that will push some of these reforms. so i was down in florida with governor scott last week, had a very good session with him, but it's very interesting, because he comes from a very different business mind set, right? so he's bottom line and results oriented. >> on healthcare. >> that's right, but he looks at things in a different way, which i think is incredibly helpful.
so we were at a session where, you know, lots of reporters were asking him, because he supports publicly-funded scholarships for kids. you know, the opponents were saying, well, vouchers, it takes money away from the system that needs that money so desperately. you know, what we were saying was, look, if you look at it from the system of -- perspective of the system, right, it is that kind of program good for the system? no, it's not good for the system, because do they lose money? absolutely. we'll look at this from the perspective of what's good for the child. if you're talking about a publicly-funded scholarship, the same amount of what the district is currently spending right now on educating that kid, the parents can take that same amount of money, doesn't cost the taxpayers any more, and take it to a private school where they'll get a better education that's clearly something that's good for that child, even though it might not be good for the system. >> but is the problem in america, real quickly, when i travel to europe or to asia, the kids seem to be in school all
the time. it's a long, long day. school all the time. now, not everywhere, but certainly more than our kids are. and is it quantity? >> well, that's part of it, because certainly if you look at the resources that are at our disposal in fixing the public education system, one of the things that people underestimate is time. you know, more time on task. that said, you have to take things on in a certain order of operation. and if you have higher quality teaching and instruction, then more of that is going to be helpful, but more crappy teaching isn't going to help anything. >> more time doesn't help that situation? >> no. >> the goal is to do what? >> the goal of students first, in this legislative agenda, is to give legislators a toolbox. here are the policies that you need to be pushing, here are the laws that you need to be passing in order to create an environment where real school reform can take place, where people can be held accountable. we talk about paying great
teachers more money, but getting rid of tenure as a way of protecting ineffective teachers. we talk about the need for choice. we talk about the need for competition and information to families. so, for example, one thing that we say is that if you are going to place a child in the classroom of an ineffective teacher, you have to receive parental consent before you do that. that just seems like an obvious thing, right? i mean, if the school district is going to keep these people on who are not pushing student achievement levels -- >> not with my kid. >> -- at least you can inform the parents. >> michelle rhee, thank you very much. >> absolutely. >> best of luck with a busy opening days of this. in arizona, the courthouse, we'll bring you the latest. it's getting weirder. and the latest on congresswoman gabrielle giffords' condition. why doctors seem to be more hopeful today. we'll explain. g to geico really save you fifteen percent
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cryptic ways that he's aware of what's going on, what he faces, that he understand his rights in these procedures, and that the judge has ordered loughner held until further notice. within the next 30 days or so, authorities have that amount of time to return an indictment or the -- i should say more to the point that the grand jury has until that time to return an indictment, but oftentimes it can be a lot sooner than that. in the meantime we have this other fox news alert, not better, not worse, which considering the fact that a bullet ripped through congresswoman gabrielle giffords' skull is not bad. doctors say that she's still in critical condition, but the fact that condition isn't deteriorating in and of itself says a lot. another noted neurosurgeon agrees. he's a chief of neurosurgery and spinal surgery at brooklyn hospital center, and says the next few days are very crucial. doctor, good to have you. >> thanks for having me. >> everyone talks, doctor, about
swelling in the brain, whether the bullet stayed there or didn't. in this case it didn't. it went clear through. swelling is the biggest threat right now. what does that mean? >> that's correct. any injury to any right pa of the body, the body responds by swelling. the brain is no different. in this period afterwards, the brain will naturally swell, and that period will go 3-5 days. the doctors are combating that aggressively, especially in the instance of a brain where the skull is keeping the brain intact, they've removed a piece of that to allow the brain to swell. in addition, they're using very strong combinations of medications to counteract that swelling in this critical period. >> so the skull itself is left open a little bit to allow for that, right? >> right. actually a large piece is removed to allow the brain to swell. it's going to run its course. it's going to expand, then calm down just like any other swelling. >> so you're looking at her over the next 72 hours, what are you looking for? >> this period, the doctors, who seem to be doing a great job so far keeping her alive, so it's a matter of maintaining and
counteracting that swelling, and allow the viable parts of the brain to make it through this period, calm down, and start to see what's still viable for the congresswoman. >> so what functions does the front part of the brain, where she was apparently struck, what do they control? >> the frontal lobe -- from reports what i have, she was shot through the back of the left side, and then came through and exited the front part. so that would give her an injury that would transverse from the back to the front, staying only on the left side. the posterior part will control vision to the right side of the visual field. there's a motor strip that controls movement to the right side of the body. then the left frontal lobe, assuming that the congresswoman is right-handed and left brain dominant actually is a lot of her personality, some memory, a lot of the essence of what she is. >> so worst case scenario she
could be cognitively out of it. best case scenario, maybe not much. >> best case scenario is a preservation of all these function, but that's a long wait and see, and i would have a guarded prognosis of that at this point. >> when you say a long wait and see, what are you talking about? >> after the initial swelling calms down, assuming she makes it through this, and we're all hopeful, the brain tends to go o to sleep in the areas that have been injured, but not permanently injured, but it will be a matter of time as things calm down, that different parts of the brain close to the injury, partially affected, can start to wake up, and we can have a better assessment of what the congresswoman has left. >> so at the very least -- we heard one neurosurgeon earlier today -- say years here, not weeks or months. >> i would say months to a year. i would say at least the minimum of a year to give a general feeling as to how well she can recover, what she can recover.
we know the brain can recover even longer periods beyond that. >> all right. but the rigors of being a congresswoman, all that comes with it, there's so much we don't know, i grant you, but to doing that, what you know of cases like this, unique though this is, what does your history tell you? >> my history is i would hope for the best, but be prepared that she will have a long, arduous and possibly -- or very possibly incomplete recovery, the nature of the injury. >> wow. doctor, thank you very much. >> thank you. >> all right. we're keeping an eye on these developments in arizona. in the meantime something that's happening across the country that affects probably far more people right now, the push to hire and the push to see the economy go around. now some unions threatening that, foreign auto plants finding themselves a new target of the united auto workers. plants run by bmw are expanding
and hiring. i appreciate your patience and indulgence during these other breaking developments. on top of strong numbers you've been having, this push by unions here to unionize your plants in this country. >> well, i mean, we've had that discussion taking place in the press mainly, but as far as we're concerned we've been south carolina now making cars very successfully for 17 years, and never had any issues. as far as we're concerned, it's status quo at this point in time. >> so you don't see this as a threat to you, or do you deal with it? would your workers if forced to vote on something like vote to keep things the way, they or do you think it ever gets to that point? >> well, we have never had any issues with our workers about unions. there's never been a conversation about it. we've had a successful relationship for 17 years. we don't see that changing. >> the environment right now, as
you see it at bmw, you know, we talk about the economy, signs that it's coming back. certainly we see it, the latest figures across the board, you know, your cars are selling, particularly here in the united states. is that a sign that the worst is over? how would you describe it? >> well, i think from our point of view, we believe that the worst is over, certainly here in the united states. and we think that we're now in a good position moving forward, because all manufacturers have taken the right actions to have the right break-even point, and now we're looking forward to a profitable future across the board. we're no exception to that. we think we're in a good position moving forward and the market's going to grow steadily. it will take some time to get back to $17 million, but grows at 10% increments every year we're in a great position. >> china is a big market. you've taken advantage of that. still a big market. >> china is a big market for us, a growing market, but i think that in the foreseeable future,
i'm talking about the next five to ten years, the united states will remain bmw's most important market. >> jim o'donnell, bmw, thank you very much, sir. >> thank you very much. >> all right, think fast. chrichris christie, jerry brown, governors, big difference, trying to stop spending. then waiting for company bosses waiting to spend the wealth.nnoc i want you to meet the one that i want you to meet the one that is.o ... that's next. while a body in motion tends to stay in motion. staying active can tually ease arthritis symptoms. but if you have arthritis, staying active c be difficult. prescription lrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. and celebrex is not a narcot. when it comes to relieving your arthritis pain,
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>> heart to tell whether this is a copycat incidence in light of what happened to congresswoman gabrielle giffords in arizona. we're just getting word now from the capitol police that similar threats have been made against senator michael bennet. his office in washington, d.c. he's the democrat of colorado, by the way. we can confirm they're saying that there was a threat against senator bennet's office, the
capitocapitol police have arrese person responsible for making the threats. that's all we have. big economic issues dominating the seat today, earning season kicks off with the likes of alcoa beating profit estimates. the aluminum-maker's net earning topping $250 million for the latest quart. revenue is weaker-than but sales are on track to jump 12% this year. the company has hired 260 workers. it's not alone. ford just announcing it's adding 7,000 workers over the next two years. this on the heels of fed chief ben bernanke saying it will be years before the job market completely recovers, but we've got the start of something. do we? richard fisher is here, the president of federal reserve bank of dallas. do you buy this comeback news? >> i think we're coming back. it's slow. it's going to be painfully slow in some cases. here's the way i like to put it. we at the federal reserve, as you know, have been
accommodative. there's a lot of liquidity in the system. a lot of boats are still tied to the dock, and those sailing have been sailing to foreign ports where they have better for a return on investment. what we care about as americans is whether or not american jobs are being created. and i think that process is beginning. it's very important for the fiscal authorities now, those that writes our laws, make our taxes, our regulations, to get it right. there's an opportunity to do so. i sure hope they deliver after this election, and we don't have old rancid wine in new bottles. >> when i was a kid, that was fine for me, but -- >> ripple was pretty good. >> pretty good. you were saying a lot of people were getting ahead of themselves at some of these improving numbers, improving earnings, maybe thinking that the boat was completely turned. >> no. the real key is growing top line revenue. final demand is weak. can't have that until more
people have jobs and businesses are driven to efficiency. they need an incentive from being encouraged to take risks, hire people, make long-term investments, invest more capital. i think that's the next stage. more confidence they have, the more willing they'll be to part with the enormous amount of cash on their balance sheets. >> when do they part? we've seen a smattering of examples, but -- >> should be incentive to do so. that's firmly up to our fiscal authorities. >> what do they have to do? extending the bush rates. were you nonplussed by that, what? >> it's a extinction of things. you have to figure out to solve our long-term debt liabilities, unfunded liabilities we have. generations of republicans and democrats that have -- they've got to do that, but do it without deincenting investment by corporations, by those that hire people. that's the private sector in this country. that's what counts. it's a tough road to hoe. i'm not a fiscal authority. i wasn't elected by anybody.
i wish them well, but they have to deliver this time around. >> at least republicans and democrats are in agreement of cutting corporate income taxes. do you think that the zeal is too much cutting taxes and not enough on cutting spending? >> i think it's a combination of the two, but where he at the central bank -- we at the central bank have done as much as we can. >> you're out of ammo? >> it's just that we can only do so much. the head of the european central bank said responsible monetary policy can't be made up for by irresponsible government. we need government policy that incents risk takers, to hire. >> was that a french foreign minister? >> it was a french -- >> i knew it! richard, thank you for your patience. >> these other things are more important, very tragic. >> they're part of the big picture we have to report on. jerry brown, the new california
governor saying all are going to share the pain to close a $25 billion deficit, and that all will pay the price. my next guest is set to announce his budget plans this week, too, but he's nixing tax hikes for spending cuts. >> good to be with you, neil. >> you're trying to close gaps that deal with big issues, not by way of any tax hikes, but by way of keeping an eye on the spending. so to chris christie in new jersey, but easier said than done in lays like california -- places like california, right? what do you make of what governor brown has decided to do, half tax hikes, half spending cuts? >> i don't know the dales of his budget, but in nebraska, what most governors should do if you want to fund forward, fund the most the most important things for your state, jobs and
education, cut programs that are no longer as valuable, no longer useful. programs that we'd like to give more money to simply aren't going to get that kind of money. and we're not going to raise taxes. we've been lowering taxes in our state. that helps you create a more prosperous economy. the end result is our unemployment rate is only 4.6%. >> so when folks or democrats come out and say, well, big difference between the fine state of nebraska and the big old state of california, what say you? >> well, i say that the difference is probably in the magnitude, but the philosophy is still the same. the principles are still the same. if you want to create jobs, it's about lowering taxes, it's about creating a more highly educated workforce. you don't do that by raising taxes. the other thing, we started earlier. it's been three years now that i've tried to slow the growth rate in state spending. i've told our agencies for the last year, if you lose someone
through retirement or attrition, we're not going to replace them. then we did one other thing. typically in governments, at the end of the fiscal year, they tell you spend it or lose that additional money. we went to a concept, save it and keep it, like a business. we're not requiring you to spend it. if you can save money, we'll carry it over into the next year, and we save millions of dollars for the challenges that we now face. >> governor, i'd be remiss if i didn't mention the developments with congresswoman giffords and her fight for life right now, still in critical condition, but it's caused, you know, pretty much everyone in congress, both parties, to assess their own protection, to assess the threats that invariably come their way, no matter who, they even their exposure to the public. have you rethought that in light of these developments this past weekend, changed any of your own behavior? >> i have? i've certainly given pause for reflection, but, you know,
that's part of being a government official. i'm going to continue to interact with my citizens. i happen to believe that we live in the greatest country in the world today. i just hope we don't have any more of these senseless and unnecessary tragedies. our hearts and prayers go out to all the arizonans impacted by this. you know what, i'm still going to do my job. i need to hear from citizens. they need the opportunity to interact with just like the congresswoman was doing. again, it's very unfortunate, i hope she does recover. >> as we all do. governor, thank you very much. appreciate it. >> you're welcome. >> from states cutting spending to companies ripping up spending, making plans to spend $70 million in the next year to hire employees. this company has been on fire, the stock has been on fire. so you've been opening this up a little bit, but to be fair you've been doing this for a
while. what do you think gets guys to do that? >> it's not guys like me, neil. we have a great team of 15,000 folks that take care of our customers every day. as a result we did extremely well through the recession. expanded stores, continue to spend capital, save money where we could, but continue to invest in our customers and offering great prices to them. as a result our cash has increased very significantly, both during the recession and now that we've begun recovery in 2010. because of our growth company, we added q3 with 976 stores, and recognize we have the opportunity to open 1800 stores in the 48 states. >> that's certainly someone who sees an expansion coming back. >> very much. >> you don't see this as a short-lived opportunity or something that fall apart? >> not at all. as a matter of fact, through the recession, as our consumers began to reduce their discretionary spending we saw softness in big ticket items, we
changed our strategy and decided to offer them the best deal possible on those items they needed most frequently. as a result, we were able to reduce our advertising, offer them a great value, and they began to visit us more frequently. we actually had a traffic increase in our stores throughout the recession. >> what gives guys like you, you know, ceos, pause? i mean, i was told from quite a few that when washington resolved the tax issue in the lame duck session, that took one uncertainty albeit for two years. the healthcare thing, they hope it works out, they don't know, but they're clearly doing more of what you're doing, not to the degree you're doing. what would stop that? what would thwart that, in your opinion? >> well, probably the best thing, being a retailer, we have a tremendous amount of data. going back to the early days of 2008, we saw consumers change very abruptly. as a result we called the recession three weeks into that year. so anything that would give us
pause right now would be a change in the behavior of our consumers, not the behavior or the consumer confidence -- >> and what you see there looks distinguish? >> everything looks good. as a matter of fact, december 1st, very uncharacteristic for a retailer, we issued a business update, increasing our earnings forecast when we still had four weeks left in 2010. so we see very good results throughout the year, and are very confident in the future. >> all right. thank you, jim wright, director of supply, chairman and ceo of the company that's certainly been on fire. see more guys follow that lead. meanwhile we've got the fox news alert for you. jared lee loughner, the 22-year-old suspect of accused of shooting 19 people, six fatally, ordered held without bail pending further court hearings. this is a new picture of him when invests middle school, we should be providing that shortly. loughner's facing murder charges, and for the attempted assassination of a member of congress, to say nothing of a
federal judge. lots of warnings signs. why didn't anyone see this coming? tamara holder joins me now. tamara is it's not the first time people see the warnings signs after the warning signs, but why does this keep happening? >> i don't know. you know, there's a spiderweb of warning signs. the police, the school, the students, his peers, his parents had to have known, because the police went to loughner's house and said your son is going to be suspended from school for his behavior. so everybody knew about it, and nobody did anything. the school suspended this kid instead of making him get some kind of treatment. of course, you can't force someone, but, you know, offering it up instead of saying go and do it yourself. >> i just wonder, you see anything unusual, anything untoward, report it. i work in manhattan, midtown manhattan. everything i see is unusual and weird.
everything looks suspicious. so where do i draw the line, how do i draw the line? how is someone battling themselves different from someone who could inflict serious harm? >> that's the problem. how do we know? how do we differentiate if it's somebody who's a little off or somebody who's potentially violent? there's a really interesting kind of side note to this. facebook, which has 600 million users, they require people to post or flag things that are abusive or that seem, you know, harmful to other members of facebook. now, why is somebody now -- des somebody have a duty to report on facebook, but there's no duty to report in the real world? it's a very interesting issue, and nobody wants to do anything until it's too late. >> you know, we talk about a lot of lone gunman or lone assassins, assassin wannabes, they all seem to share a same
character trait, knittle a littt unusual to put it mildly, getting increasingly erratic in the years or months leading up to their act. it's a consistent theme. there must be consistent things we should look for, right? >> well, yeah. i think you hit the nail on the head. there has to be some kind of major shift in behavior here with all of these people. you know, a lot of loughner's friends said that he was a football player in high school, and that he was ammo circumstances he was talented -- he was a musician, he was talented, and in the last year he fell off. so those are clear warnings signs. we're not talking about people who are just a little off, but have really changed their behavior drastically. >> you know, these kind of charges get back to where do you draw the line, again, between that crazy behavior and someone who might inflict harm. authorities will say, we can't arrest someone for making crazy
remarks or acting out hostilely in class, or what have you. can they? >> no. they have to have an actual crime or suspect somebody of a crime before bringing them into custody. and that's what's so bizarre about this kind of behavior. you know, loughner didn't make any specific threats to anybody online or to another person. he was just acting crazy. so what could they arrest him for? they can't arrest people who behave, you know, like nut jobs. >> i'm wondering, though, it's the nut job that's the hardest to stop. john kennedy once said, if someone is eager to shoot at me from a roof, i'm paraphrasing here, and take me out, they'll do so. northwestward, if someone is intent on doing something crazy, secret service agents say they're the most difficult to guard against, because they pop out in the middle of a crowd or do what this guy did over the weekend, right? >> right. that's why